Mr. Stephen Kenwood reports

MAJESTIC ANNOUNCES SIGNING OF LOI TO ACQUIRE GOLD PROJECT

Through its 70.5-per-cent-owned subsidiary, Persistence Resources Group Ltd., Majestic Gold Corp. has entered into a non-binding letter of intent (LOI) with a vendor and target company to acquire 70 per cent of the issued share capital (the possible acquisition) of the target company incorporated in the PRC (People's Republic of China).

The target company is principally engaged in gold mining and processing, emergency rescue for mine accidents and preventive safety inspection, property leasing and investment with its own fund. The target company owns mining licences of three gold mines located in Yantai City of the Shandong province in the PRC. The consideration for the possible acquisition shall be determined following arm's-length negotiations between the company and the vendor and shall be set out in the formal agreement.

The company aims to increase its market share through targeted acquisitions of high-quality gold mining assets, and believes that if the possible acquisition is completed, not only will the company's market position in Muping-Rushan gold metallogenic belt and the Shandong province be strengthened and solidified, but the resources and talents of the target company can assist the company to expand its mineral resources and boost the gold concentrate processing capacity.

Persistence is currently conducting preliminary due diligence on the target company (the due diligence). Within a month of obtaining the results of the due diligence, the company will then initiate negotiations with the vendor for entering into a formal agreement and agree on specific terms in relation to the possible acquisition based on the results of the due diligence work.

About Majestic Gold Corp.

Currently focused in China, Majestic Gold is a British Columbia-based company engaged in commercial gold production at the Songjiagou gold mine in eastern Shandong province, China.

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